Wall Streets waits for Godot
Stocks, for little over a week, have been stuck in neutral.
On June 4, the Dow Jones closed at 8,750. And with a little less then two hours to go in the current trading week, the Dow was trading at 8,759. Come on, we can do it. All we need is to drop another 9 points.
That said, it’s not as if there’s been no news over the past 8 days. Last Friday we had the mixed bag unemployment report. On Tuesday, Treasury announced that 10 banks would be able to payback $68 billion in federal bailout money. And today came news that consumer confidence rose to its highest level in nine months.
Still, it seems like Wall Street is waiting for Godot. Or something definitive to either keep the current post-March low rally going, or spark a sell-off. Maybe everyone is waiting for the start of the second-quarter warning season on earnings, which could very well begin in the next week or so. Or maybe the summer doldrums have kicked in earlier than usual.
Personally, I believe a sell-off is coming because the much hyped signs of an economic recovery seem overdone. But I’ve never counted myself as a stockpicker.
Update: Dow closes up 28 and change to 8,799. Still, pretty much treading water. But at least the Dow is green for the year. Something to cheer this weekend.